100 GREAT BUSINESS IDEAS • 147- Distribution advantages. An established brand can ensure
manufacturers get the best distributors. Distributors are more
receptive to a new product from an established brand. - Brand identity or image reinforces the product’s appeal. The Rolls-
Royce brand has a stately identity and is associated with values
of craftsmanship, tradition, and prestige; Volvo has a different
brand identity, with associated values of safety, functionality,
and family orientation. The brand values of different products
reinforce their appeal to specifi c market segments. - Brands help to build customer loyalty, because of the trust and
affection they generate. - Brands make it easier to introduce new products by exploiting
“brand equity.” - Brands provide opportunities to open up new market segments.
For example, food manufacturers create sub-brands with diet
versions of products. - A strong brand enables products to overfl ow from one geographic
market into another. This is particularly the case in industries
affected by fashions. - Brands can extend the life of a product. As brands combine trust
and respect, careful marketing can exploit these qualities and
inject new life into a stagnating product. For example, Danish
toy maker Lego produces toys linked with movies. - Brands provide a valuable, market-oriented focus around which
fi rms can organize themselves. The brand manager is often
directly responsible for what the product offers, as well as how it
appears to the customer.